General Motors SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
General Motors
General Motors Corporation (GM) is primarily engaged in the production of
vehicles. It designs, manufactures and markets car, truck and other automobile
parts all over the world. GM has strong brand portfolio. The company markets its
products under Chevrolet, GMC, Hummer, Pontiac, Saab, Saturn, Corvette,
Opel, and Vauxhall, Buick, Daewoo, Holden, and Wuling. The company’s strong
brand portfolio gives it significant competitive advantage. However, sustained
decline in light vehicle sales as a result of increasing durability of vehicles and
weak economic conditions in the US would put additional pressure on the overall
performance of the company.
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General Motors SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Weaknesses
¾ Strong brand portfolio
¾ Growing business in
¾ Declining market
share
Asia Pacific and Latin
¾ Product recalls
American Region
¾ Declining financial
¾ Large scale operations
External
Unfavorable
Opportunities
¾ Increasing demand for
hybrid electric vehicles
¾ Opportunities in
emerging markets
¾ New models
performance
Threats
¾ Declining demand
for light vehicles in
US
¾ Rising raw material
prices
¾ ELV Directive
¾ Stringent emission
standards
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